Doughnut chain Krispy Kreme is acquiring the majority stake in late-night favorite Insomnia Cookies for an undisclosed amount, CNBC reports.
The brand announced the news on Friday, with the deal allowing it to expand its offerings into other, equally delicious baked goods.
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Insomnia will continue to act as an independent, stand-alone company and will be under the umbrella of European investment firm JAB Holding, which also owns companies including Keurig Dr. Pepper, Peet’s Coffee & Tea, Pret A Manger and Panera Bread, building a veritable cafรฉ empire. The firm acquired Krispy Kreme in 2016 for $1.35 billion.
A source said that the deal values Insomnia Cookies at less than $500 million and is set to close in the fourth quarter.
“At Krispy Kreme, we have an 81-year heritage of creating the most awesome doughnut experience imaginable, and today we are delighted to add Insomnia Cookies, a rapidly growing business with an innovative delivery experience and exceptional product that is beloved by consumers,” Krispy Kreme’s CEO Mike Tattersfield said in a statement via Business Insider.
Insomnia Cookies was founded in 2003 by then-University of Pennsylvania student Seth Berkowitz.
The company allows customers to satisfy their late-night sugar cravings, with its prime customer base consisting of college students, as its stores stay open and offer delivery until 3 a.m. and many of its locations are near college campuses. In addition to cookies, the chain also offers other sweet treats including brownies and ice cream.
“While we like to be near college campuses, it is not mandatory,” the company’s senior director of marketing, Megan Bruton, told CNBC in 2015. “After all, it isn’t just college students who love warm, delicious cookies. As long as there is an active community that we can become a part of, then a market is potentially appealing to us as a brand.”
Insomnia now has 135 locations throughout the U.S., and Berkowitz will continue to serve as the company’s CEO.
“Mike and I share the same ambition for our brands: To be the best at what we do and delight consumers with the highest-quality sweet-treat experiences,” Berkowitz said in a statement. “My team and I are confident that this shared vision makes Krispy Kreme the ideal partner to support Insomnia through our next phase of growth.”
Photo Credit: Twitter / @insomniacookies
